Middletown proposes 2.55 percent tax levy hike

MIDDLETOWN — Middletown School District taxpayers would be looking at a 2.55 percent tax levy increase in the 2013-2014 school year under Superintendent Ken Eastwood's budget proposal.

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By NATHAN BROWN

recordonline.com

By NATHAN BROWN

Posted Mar. 23, 2013 at 2:00 AM

By NATHAN BROWN

Posted Mar. 23, 2013 at 2:00 AM

» Social News

MIDDLETOWN — Middletown School District taxpayers would be looking at a 2.55 percent tax levy increase in the 2013-2014 school year under Superintendent Ken Eastwood's budget proposal.

This proposal includes $1.2 million in savings because of teacher retirement system pension "smoothing" — i.e., signing on to a fixed 12.5 percent employer contribution rate, an option offered in the proposed state budget. The levy would go from $63.8 million to $65.4 million, while spending would go from $140.6 million to $145.6 million, a 3.6 percent increase.

The budget would abolish the district's assistant office manager positions — four of the six of them are currently filled — and replace them with keyboard specialists. Eastwood said this would save $73,000.

The district could raise taxes up to 3.1 percent without exceeding the state tax cap — down from previous calculations of about 5.1 percent, since using the "smoothing" option reduces the pension amounts that are excluded from the cap.

This proposed budget is less painful than Middletown's school budgets over the past few years, which saw both higher tax hikes and more job cuts. It is also less painful than the budgets in some neighboring districts, which are facing much more severe cuts.

However, Eastwood sounded pessimistic about the 2014-2015 school year budget, saying that the district's costs could increase greatly when more requirements of the 2010 national health-care law kick in and they have to offer insurance to more employees than they do now.

The school board will vote on the budget April 4. The public hearing is scheduled for May 9; the public vote is scheduled for May 21.